Northstar Aerospace receives $14 million contract as the U.S. Army exercises option for Apache transmissions

    Listed: TSX
    Symbol: NAS Common Shares

    CHICAGO, March 24 /CNW/ - (All amounts in this news release are stated in
U.S. dollars) Northstar Aerospace, Inc. has been awarded a $14 million
contract by the U.S. Army Aviation and Missile Command (AMCOM) to manufacture
transmissions for the AH-64 Apache attack helicopter.
    In 2006, Northstar received a separate $14 million contract from AMCOM to
manufacture transmissions for the AH-64 Apache with an option to purchase
additional transmissions within two years. This contract is the exercise of
that option. The 2006 contract followed a contract with AMCOM to deliver
150 transmissions with the last transmission delivered in 2004.
    Northstar is manufacturing the transmissions at its Chicago facility with
support from other company operations. Deliveries on the original contract
award begin late this year. Deliveries on the optional contract are slated to
begin in 2009.
    "The conversion of the option to purchase additional transmissions
further validates Northstar's strategy to become a leading subcontractor to
the U.S. military. We are also supplying maintenance, repair and overhaul, as
well as, spares for the Apache. In addition, we provide maintenance, repair
and overhaul as well as spares for the CH-47 Chinook helicopter and retrofit
wheel brake kits used on Light Armored Vehicles," said Harry Schmink,
President Gears and Transmissions of Northstar Aerospace, Inc.
    The company is also working with the U.S. Army Aviation Applied
Technology Directorate (AAATD) and its design partner, The Boeing Company, on
the Block III AH-64D Apache Longbow helicopter modernization program utilizing
Northstar's proprietary Face Gear manufacturing process.
    Northstar was also awarded a development contract in 2007 from The Boeing
Company to participate in the Enhanced Rotor Drive System (ERDS), a joint
program with Boeing and the AAATD. ERDS is targeted to apply Face Gear
technology to upgrade helicopters such as the CH-47 Chinook.

    Northstar Aerospace, Inc. ( is North America's leading
independent manufacturer of flight critical gears and transmissions. Northstar
Aerospace is a public company (TSX:NAS) with operating subsidiaries in the
United States and Canada. Its principal products include helicopter gears and
transmissions, accessory gearbox assemblies, rotorcraft drive systems and
other machined and fabricated parts. It also provides maintenance, repair and
overhaul of helicopter engines and transmissions. The Company's executive
offices are located in Chicago, Illinois. Its plants are located in Chicago,
Illinois; Phoenix, Arizona; Stroud, Oklahoma; Anderson, Indiana; and Milton
and Windsor, Ontario.

    %SEDAR: 00002555E

For further information:

For further information: Craig A. Yuen, Chief Financial Officer, (708)

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